Forefront | Blog
2024 M&A Market Year in Review
In 2024, North American M&A activity grew by about 16.4% in deal value and 9.8% in deal count year-over-year, with total deal value surpassing $2 trillion across 17,509 deals. This growth was driven by more favorable macroeconomic conditions, such as stabilized inflation and lower interest rates. Q3 saw the highest activity, while Q4 experienced a 23% decrease in value and a 2% decline in deal count, mainly due to fewer large take-private deals as public market valuations reached new highs.
2024 M&A Trends 1
Megadeal Surge – North America has seen a notable uptick in megadeals (transactions over $5 billion), which have been a driving factor behind the growth in total M&A deal values. The rise in megadeals has been particularly evident in sectors like technology, energy, and healthcare.
Private Equity Activity – Private equity (PE) firms have shown a strong appetite for deals, especially in a landscape where they can leverage capital efficiently. PE-backed M&A deals saw an increase in activity, with firms aiming to acquire companies at attractive valuations, particularly in sectors that are ripe for transformation. This has been a key driver of North American deal value.
Regulatory Environment – The regulatory climate in the U.S. has become more favorable for large deals, with a potential decrease in the intensity of antitrust scrutiny compared to previous years. This shift is encouraging companies to pursue larger, cross-border deals without the overhanging concerns of regulatory barriers that characterized the earlier part of the decade.
Strategic Domestic and Cross-Border Transactions – Despite geopolitical tensions, North America remains an attractive hub for cross-border M&A, especially with the revitalization of deals in sectors such as tech and energy. Both U.S. and Canadian companies are increasingly eyeing foreign markets for growth, with strategic international acquisitions seen to access new technologies and capabilities. Companies in North America are focusing more on strategic acquisitions aimed at expanding their market share, achieving synergies, and securing competitive advantages.
2025 M&A Outlook 2
The M&A outlook for North America in 2025 is positive with deal activity expected to increase in Q2, driven by several key factors. A shift in U.S. regulatory policies, particularly regarding antitrust regulations, is expected to ease barriers for larger, cross-border deals, making it easier for corporations to pursue strategic mergers and acquisitions. Economic conditions are also favorable, with declining interest rates and a resilient economy contributing to increased corporate confidence and easier financing options, further encouraging deal-making. Private equity activity is anticipated to remain strong as firms continue to deploy capital, taking advantage of favorable market conditions. Sector-specific trends, especially in technology, healthcare, and energy, are poised to drive strategic acquisitions, with companies seeking to expand in areas such as AI, cybersecurity, healthcare services, and renewable energy. Additionally, high market valuations and cross-border opportunities are expected to promote a more global approach to M&A. Overall, the combination of a favorable economic environment, relaxed regulatory scrutiny, and strategic acquisition interests across key sectors positions North America for an active and lucrative M&A year in 2025.
